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Not if the SaaS has ongoing hosting bills, or years of R&D to recoup.
by matchagaucho 4y ago
Not if the SaaS has ongoing hosting bills, or years of R&D to recoup.
- TAForObvReasons 4y ago"years of R&D to recoup" does not affect the marginal cost of providing the service to another customer
- mhuffman 4y agoGood luck explaining sunken costs here! I have had many, many discussions about this on this very site and I think that since it is so non-intuitive to anyone that has not taken business courses they just do not believe it.
- matchagaucho 4y agoGoing down market with steep discounts most often has higher maintenance and support costs.
- Dylan16807 4y agoEvery SaaS has hosting bills. Some of them are significant per customer, and some of them aren't.